We All Pay When Businesses are Taxed

There are about 28 million businesses in the United States… about 1 business for every 12 Americans. Many are so small that the owner is the only employee. A lot of people believe business owners are wealthy, and some are, but most aren’t.

Because most taxpayers don’t own a business, it’s easier for politicians to raises taxes on businesses than on the rest of us. But, they’re really raising taxes on the people who create jobs… the people who pay us and the people we buy things from.

Some politicians want to convince us they’re taxing the wealthy and tell everyone that business is paying more so you don’t have to. But, that’s just not true.

Everyone pays more when the government raises taxes on people who own businesses. The average grocery store makes just 1% profit. For a nice restaurant, it’s 2%. Those tiny profits keep businesses open, help them expand, and hire more people.

When taxes go up, people who own businesses have to make hard choices. They’re forced to cut costs… maybe by laying off workers or they raise the prices you pay or even both.

It works the same in reverse. Lower taxes on people who own businesses means more businesses open, like grocery stores and restaurants. There’s more people working and better pay for you. Those businesses will compete more for customers. You’ll get better prices and services, buy better food, and eat out more.

But if government raises business taxes, we all pay more. These are the companies you work for. It’s where you shop and where you eat. When politicians talk about raising taxes on job creators, those companies can’t pay more which means you won’t get a raise. They’ll raise prices which means you’ll pay more for the things you buy. It may mean layoffs which means your job might get cut. When jobs are cut, someone once employed and paying taxes instead collects unemployment.

This costs all of us even more. That’s the cycle that raising taxes on business owners creates. That’s the story politicians won’t tell you about raising taxes on the people who own businesses and create jobs. The next time politicians talk about raising taxes on business owners and job creators, you know who they’re talking about hurting… you, your family, and your neighbors.